Retail rice prices may rise by up to ₹10 per kg as exports and raw material shortages hit supply
Bengaluru: Bengaluru residents are facing another blow to household budgets as rice prices have started rising sharply across Karnataka, days after cooking oil prices witnessed a fresh increase in the retail market.
Traders and market experts have warned that rice prices in Bengaluru could rise by up to ₹10 per kilogram in the coming weeks due to falling local stock availability, increased exports and shortage of agricultural raw materials. The latest hike is expected to further burden middle-class and lower-income families already struggling with inflation in essential commodities.
The price rise comes at a time when costs of fuel, commercial LPG cylinders, auto LPG and edible oils have already increased significantly across several markets.
Rice Prices Rise In Wholesale And Retail Markets
According to traders, wholesale rice prices have already increased by nearly ₹4 to ₹5 per kilogram, while retail prices have risen between ₹8 and ₹10 per kilogram in parts of Bengaluru.
Officials in the grain trade said the price of a rice bag in the wholesale market has increased by around ₹55 to ₹60, while retail market prices have gone up by ₹60 to ₹80 per bag depending on the variety and supply conditions.
Market sources also warned that prices may continue to rise further by the end of May if current supply trends persist.
“Rice stocks are reducing in local markets due to higher export demand and shortage of raw materials,” traders said.
Cooking Oil Prices Add To Household Burden
The latest increase in rice prices comes shortly after edible oil rates rose across Karnataka markets. Wholesale cooking oil prices reportedly increased by nearly ₹3 per litre, while retail prices rose between ₹5 and ₹10 per litre in recent days.
Consumers say the combined rise in prices of staple food products is severely affecting monthly household budgets, especially among salaried families and daily wage earners.
Economic experts warn that sustained inflation in essential commodities may eventually impact restaurant businesses, small eateries and food supply chains across urban areas.
Exports And Supply Shortage Blamed
Traders attributed the rise in rice prices primarily to shortages in agricultural raw materials and increasing export demand from international markets.
Industry sources stated that large quantities of rice are currently being exported to countries including Sri Lanka, from where supplies are reportedly reaching other foreign destinations. As export volumes increase, local stock availability in Karnataka markets is gradually declining.
The reduction in supply has triggered fears of additional price hikes in Bengaluru and other parts of the state over the coming weeks.
Analysts believe the situation may worsen if procurement costs continue rising and transportation expenses remain high due to fuel-related inflation.
